UP Long-Term Leases Aren’t an Option Anymore

SCROLL DOWN​

Long term leases were always a risky option for businesses, especially for startups that aren’t too far into their launch and are still struggling to find their place in the market. But a lot of companies still opt for long term leases thinking mistakingly that the longer the lease: the more cost effective it must be, the more it increases company moral, and better on the management the lease becomes.

In the pre-pandemic times, it was debatable whether long term leases are a good/risky idea for a company- factors including company size and growth opportunity. Now, because of the effect COVID-19 has had on the world, it’s certain that long term leases are rarely a good fit for your company. If you’re still on the long-lease support team and want to buy a lease for the next 8-10 years, here’s why you shouldn’t, and how a coworking space can save you time, money, and build a better company culture

The Market is Unstable

Long-term leases are deemed as the startup killer because businesses can never predict their growth, how much space they need, how much employees they’ll have, or if they’ll even exist in the next 5 years. Especially with COVID-19, you never know when people will be able to return to normal work hours and when a situation like this may arise again.

With instability, CEOs are looking for flexible office spaces that can expand and contract depending on the market and on the needs of the company at that given time. A flexible office allows CEOs and CFOs to manage variable costs as markets and individual needs change. An office with 50 employees may only need an office for 25-30 if only half the team comes in on a given day. As soon as the office wants to either expand the office size, or send more people to work from home, the office and the balance sheet will reflect that decision. This is just not possible in fixed 10 year office lease.

Your Employees Want to Work from Home

Working from home was deemed a hazard for a business for a very long time. People thought there was no hope for efficiency and productivity if employees worked from their homes. Well, now the same companies that said the jobs weren’t remote, are now getting the job done remotely. It goes to show how there can be a certain amount of flexibility regarding where people should be working and the need for big offices could be completely eliminated in the near future.

While productivity is possible from home, this furthers increases the need for a flexible office plan that can adjust as employees balance part time remote and part time in-office – the new standard in the workspace.

Long-term leases are a thing of the past- not matter the size of your company. You should instead try opting for short leases with the option to renew.

MoreArticles

August 30, 2021

How Working in A Co-Working Space Helps You Leverage Your Business

In recent years, there has been a shift in the commercial world from using traditional office spaces to using co-working spaces. While initially used by freelancers or remote workers, these spaces are now used by large...
August 30, 2021

Blogging in the Digital Era: The 24 hour Story

Having a presence on social media today is standard fare and basic for communication with individuals and businesses alike. The digital age has made bloggers of all of us...
July 29, 2021

Communicate and Create Connections

Whether you’re a start-up looking to save on your monthly costs or a large corporation looking to establish long-termrelationships with other businesses, the Urban Place app might be just what you’re looking for...
July 11, 2021

Through Crisis Comes Creativity – How the World Is Adapting to COVID-19

Through Crisis Comes Creativity – How the World Is Adapting to COVID-19 Over the past months, a lot has changed all around the world. The global pandemic is a situation that none of us have ever been a part of. The world’s economy is uncertain...
June 20, 2021

Who works at Co-Working Spaces?

Co-working refers to using a neutral space by people who are self-employed or who work for different employers on different projects.
May 31, 2021

How To Leverage Your Existing Business In Line With Changes In The World Of Employment?

In the spheres of entrepreneurship and investment, leverage is a concept that refers to how an organization can obtain new assets for either start-up or business growth.

UPgrade your life’s WORK

New workspace please!

Please fill up your information and we will get back to you shortly.

    Location:

    iNTRESETED IN: